1. On 28 October 20X8, ComTrend Sdn. Bhd. a Malaysian company signed a contract with Global...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1. On 28 October 20X8, ComTrend Sdn. Bhd. a Malaysian company signed a contract with Global Technology Pte Ltd of Singapore to buy a computer software worth $$300,000. The contract stipulates a payment period of 120 days where the payments are to be made in S$. The exchange rate prevailing at the time of the purchase was S$1 = RM2 (Spot Rate). The financial year of ComTrend Sdn. Bhd. ends at 31 December every year. Assume that the exchange rates on the balance sheet date and the settlement date are as follows: Balance sheet date at 31/12/20X8 S$1 = RM2.7 Settlement date at 28/2/20X9 S$1 = RM2.6 (a)Compute any unrealised gain or loss on the balance sheet date and on settlement date. (b)Prepare the journal entries for the above transactions at the transaction date, balance sheet date and the settlement date. 1. On 28 October 20X8, ComTrend Sdn. Bhd. a Malaysian company signed a contract with Global Technology Pte Ltd of Singapore to buy a computer software worth $$300,000. The contract stipulates a payment period of 120 days where the payments are to be made in S$. The exchange rate prevailing at the time of the purchase was S$1 = RM2 (Spot Rate). The financial year of ComTrend Sdn. Bhd. ends at 31 December every year. Assume that the exchange rates on the balance sheet date and the settlement date are as follows: Balance sheet date at 31/12/20X8 S$1 = RM2.7 Settlement date at 28/2/20X9 S$1 = RM2.6 (a)Compute any unrealised gain or loss on the balance sheet date and on settlement date. (b)Prepare the journal entries for the above transactions at the transaction date, balance sheet date and the settlement date.
Expert Answer:
Related Book For
Posted Date:
Students also viewed these finance questions
-
Prepare adjusting journal entries for the year ended (date of) December 31, 2011, for each of these separate situations. Assume that prepaid expenses are initially recorded in asset accounts. Also...
-
The Gansac Publishing Company signed a contract with an author to publish her book. The signing took place on January 1, 2007 and a payment of $20,000 was made. The agreement was that the author...
-
Prepare general journal entries for the following transactions of a new company called Special Pics. Aug. 1 Madison Harris, the owner, invested $14,250 cash and $61,275 of photography equipment in...
-
Use the figure to make the lists in Exercises 8586. List the slopes m 1 , m 2 , m 3 , and m 4 in order of decreasing size. y y = mx + b y = mx + b X - y = m3x + b3 y = m4x + b4
-
Consider the following periodic signal: SHAPE * MERGEFORMAT (a) Sketch the signal x(n) and its magnitude and phase spectra. (b) Using the result in part (a). Verify Parseval's relation by computing...
-
Use the body mass indexes (BMIs) for males and females listed in Data Set 1 "Body Data." Use the given data sets in Appendix B. Use the boxplots to compare the two data sets. Data Set 1 AGE GENDER...
-
What are the totals of the debit and credit columns from the salesjournal for the month of May? Debitamount: Creditamount:
-
Bill purchased a vacation lot he saw advertised on television for an $800 down and monthly payments of $55. When he visited the lot he had purchased, he found it was not something he wanted to own....
-
C Note: Figure not drawn to scale. The circle above has center C and has a radius of 2 If the length of arc PQ (shown in bold) is between and 16, what is one possible integer value of y? 36 A toy...
-
State the predicted height, taken from your graph, of the ping pong ball bounce when dropped from 4 m. Then draw a sketch of the ping pong ball at the top of its bounce (maximum height) and give your...
-
In a diet analysis of three different species of juvenile fish, a researcher surveys the prey of brook trout, coho salmon, and steel head trout found in a tributary of Lake Superior. The researcher...
-
Tree Seedlings has the following current-year purchases and sales for its only product. Date January 1 January 3. February 14 February 15 June 30 November 6 November 19 Activities Beginning inventory...
-
Janina, Incorporated, has the following mutually exclusive projects. Year Project A Project B 0 -$ 18,000-$21,000 1 11,000 12,000 8,500 2 3 7,500 2,700 7,500 e-1. Calculate the payback period for...
-
V(c) Recall that under prospect theory, the value of an outcome x that occurs with with probability p is V(x) = (p)v(x). Suppose x > 0 and Pr{x} = Pr{-} Based on the characteristics of decision...
-
Consider the following cash flows of two mutually exclusive projects for AZ-Motorcars. Assume the discount rate for both projects is 12 percent. Year AZM Mini-SUV AZF Full-SUV 0 -$475,000 -$825,000 1...
-
In the two-period model, suppose a household's income in the first period is $50,000, income in the second period is $60,000, and the real interest rate is 25 percent. Draw a diagram showing the...
-
CengageNOW | Online X m/takeAssignment/takeAssignmentMain.do?invoker-takeAssignmentSessionLocator progr Overhead Variances At the beginning of the veac Lopez Company had the thing standard cast sheet...
-
If (x) 0 on the interval [a, b], the definite integral gives the exact area under the curve between x = a and x = b.
-
Amalgamated Holdings provided the following information in Note 1 Significant Accounting Policies in its 2013 Annual Report: (ii) Associates Associates are those entities for which the Group has...
-
Nici Limited (NL) is a Canadian public company that operates in the swimsuit industry. They design, develop, and manufacture swimsuits that are then sold to retail stores across Canada. In the past,...
-
What is the difference between the deferral method and the restricted fund method?
-
Forward Quotes. FXStreet foreign exchange services provides representative forward rates on a multitude of currencies online. Use the following Web site to search out forward exchange rate quotations...
-
Bank of Canada Exchange Rate Index (CERI). The Bank of Canada regularly publishes an index of the Canadian dollars value, the CERI. The CERI is a multilateral trade-weighted index of the Canadian...
-
Daily Market Commentary. Many different online currency trading and consulting services provide daily assessments of global currency market activity. Use the following GCI site to find the markets...
Study smarter with the SolutionInn App